Misty Posted September 7, 2011 Share Posted September 7, 2011 Maybe, $200,000? We don't have it yet (still a few years away).. But when we do get it, we want it to grow. We're actually thinking of starting a small business in the gluten-free world. Maybe even a small GF restaurant or lunch bar? Right smack dab in the middle of a big city. What do you think? Do you think enough people will be gluten free in the next 5-10 years for this to be a success? If no small business ventures, how would you invest it? Quote Link to comment Share on other sites More sharing options...
PhotoGal Posted September 7, 2011 Share Posted September 7, 2011 I probably wouldn't put it all in one place. But I'm kind of a chicken. :D Quote Link to comment Share on other sites More sharing options...
G5052 Posted September 7, 2011 Share Posted September 7, 2011 Restaurants are notoriously difficult to keep solvent. Unless you've worked in that industry, I wouldn't even consider it. And even then, I probably wouldn't do it. I'd probably pay off bills, renovate parts of the house, and invest the rest. We have a financial advisor picked out should our ship ever come in. If ever. We're not that far from college and retirement, so those areas would be our priorities. Quote Link to comment Share on other sites More sharing options...
gingersmom Posted September 7, 2011 Share Posted September 7, 2011 I wouldn't think $20,000 would go very far in the restaurant business. I was in Boulder, Colorado recently and I think every restaurant we ate at had notes on the menu if the item was gluten free. I think the whole town is gluten obsessed. Quote Link to comment Share on other sites More sharing options...
Misty Posted September 7, 2011 Author Share Posted September 7, 2011 Restaurants are notoriously difficult to keep solvent. Unless you've worked in that industry, I wouldn't even consider it. And even then, I probably wouldn't do it. Guess I should have mentioned... Dh is a supply officer in the Navy. Meaning he handles all the money for his command, all the supplies, inventory (food and parts) ordering new supplies for ANYTHING that his command needs (like ship parts, etc) and he also manages all the enlisted guys who work under him (mostly cooks and similar). He has to stay on his cooks to make sure they are making decent food, etc.. He also worked a lot of fast food in his teen years and worked his way up quite easily. He's very good at "running things" and managing people. I, on the other hand, am useless in this regard.. :tongue_smilie: However, I think the gluten-free market is on fire right now and will be even moreso in the next 10 years. Crazy idea? Quote Link to comment Share on other sites More sharing options...
Misty Posted September 7, 2011 Author Share Posted September 7, 2011 I wouldn't think $20,000 would go very far in the restaurant business. It was $200,000. :) Quote Link to comment Share on other sites More sharing options...
Danestress Posted September 7, 2011 Share Posted September 7, 2011 so that I could invest the money so that it would grow for retirement. Freedom from worry would be worth a lot for me. If you want to start a business, I would seek legal counsel about how to protect my own personal assets from business debts. If the business fails, you don't want to lose your inheritance. Probably a person more willing to take risks would stand to profit more. But for me, I would want to hedge my bets and know that 200k could grow into a reasonable retirement fund, so why run out and spend it? If my business venture were not worth a bank lending money for, it wouldn't be worth me risking my own nest egg. Maybe part of a nest egg:) Also I would try to remember that no one has an inheritance until someone dies. Prior to the actual death we just have hopes and dreams. Wills can be rewritten. All but the very wealthy can easily run through a very large estate with massive "end of life" expenses that drag out through the years. So don't start spending more in anticipation of what you hope to receive. Quote Link to comment Share on other sites More sharing options...
gingersmom Posted September 7, 2011 Share Posted September 7, 2011 It was $200,000. :) Too funny. I am exhausted and half asleep as I wait for my daughter to show me her final copy of her english essay. Quote Link to comment Share on other sites More sharing options...
aggieamy Posted September 7, 2011 Share Posted September 7, 2011 I'm very financially conservative so what I'd do would be to pay off the house and fund substantial kids college funds. After that I would put any extra into retirement savings. I'm all for owning a business, in fact DH and I own two and it's our only income but unless I had substantial experience in the restaurant industry I wouldn't touch that for anything. Seriously. We have two good friends who own restaurants and I have an entire branch of my family with a chain of restaurants. The work is non-stop. You don't go on vacation. You can't really trust your managers unless they're blood relations (or so I've been told :glare:). And unless you love dealing with people (some of whom are unhappy with your food or service) all day then it's emotionally draining. You say that your DH is military? How would you deal with relocating and having a business? Quote Link to comment Share on other sites More sharing options...
celticmom Posted September 7, 2011 Share Posted September 7, 2011 If I were going into a niche area of the food service industry I would be more inclined to create and market frozen and/or boxed items. If you open a restuarant you are tied to the local economy and have a limited market. If you sell frozen/boxed items you can market nationally or even globally. That is just my take on the idea. Quote Link to comment Share on other sites More sharing options...
Tap Posted September 7, 2011 Share Posted September 7, 2011 There are a few in our area. The most advertised is Gluten free pizza. Quote Link to comment Share on other sites More sharing options...
Misty Posted September 7, 2011 Author Share Posted September 7, 2011 I'm very financially conservative so what I'd do would be to pay off the house and fund substantial kids college funds. After that I would put any extra into retirement savings. I'm all for owning a business, in fact DH and I own two and it's our only income but unless I had substantial experience in the restaurant industry I wouldn't touch that for anything. Seriously. We have two good friends who own restaurants and I have an entire branch of my family with a chain of restaurants. The work is non-stop. You don't go on vacation. You can't really trust your managers unless they're blood relations (or so I've been told :glare:). And unless you love dealing with people (some of whom are unhappy with your food or service) all day then it's emotionally draining. Ack! You've just about talked me out of it! Stress is something I definitely DON'T need more of! You say that your DH is military? How would you deal with relocating and having a business? He's due to retire in the next few years. Quote Link to comment Share on other sites More sharing options...
abacus2 Posted September 7, 2011 Share Posted September 7, 2011 I wouldn't treat an inheritance differently just because we received it in a chunk. We'd be going down our list of priorities we use for allocating our regularly received smaller amounts of money: pay off debt, build emergency savings, pay off the house, save for retirement, save for kids college, replace vehicles as needed, do fun things as a family, house repair/improvement projects. Quote Link to comment Share on other sites More sharing options...
Misty Posted September 7, 2011 Author Share Posted September 7, 2011 Also I would try to remember that no one has an inheritance until someone dies. Prior to the actual death we just have hopes and dreams. Wills can be rewritten. All but the very wealthy can easily run through a very large estate with massive "end of life" expenses that drag out through the years. So don't start spending more in anticipation of what you hope to receive. Very true.. We're definitely not counting our chickens just yet.. And I so dread the day it happens.. But it WILL happen so it's something we need to plan for. My grandparents are in their mid-90's now and not doing so well. Dh is starting to talk about what we should do with the money so we are trying to plan so we don't do any "shock spending", but we're definitely not spending NOW.. In fact, we are saving.. because you just never know. We're definitely not counting on it. I really hate to think about it and plan for it because I definitely don't want them to pass. It's going to be a shock and such a loss of wonderful people from our lives. Quote Link to comment Share on other sites More sharing options...
Misty Posted September 7, 2011 Author Share Posted September 7, 2011 If I were going into a niche area of the food service industry I would be more inclined to create and market frozen and/or boxed items. If you open a restuarant you are tied to the local economy and have a limited market. If you sell frozen/boxed items you can market nationally or even globally. That is just my take on the idea. Very true and this did cross my mind.. I just hate the way most frozen and boxed gluten-free stuff tastes.. It tastes soooooo much better freshly cooked. I don't know.. I'm starting to think none of it's worth doing now.. Too much stress involved.. :confused: Quote Link to comment Share on other sites More sharing options...
Sandra in FL Posted September 7, 2011 Share Posted September 7, 2011 I would buy cheap rental property in the very depressed areas (like Miami or I think? Phoenix) for cash. In Miami, one could get a townhouse/villa type place for around $70,000, fix up a bit (labor is cheap as so many are out of jobs) and rent out for $1200-$1400 per month. Rentals are in demand because people can't qualify for loans (credit is messed up). So, if you could scrape together another $10,000 and maybe get 3 such properties. $3600 to $4200 income minus property tax/ins per month is great for retirement, and the property values will rise (all the land in Miami is developed). Doesn't matter what happens to the stock market - people always need a place to live. Of course, this is for the present. Who knows what it'll be like down the road. I would not do something like a restaurant - too much risk and too much work/long hours/worry. Quote Link to comment Share on other sites More sharing options...
tex-mex Posted September 7, 2011 Share Posted September 7, 2011 If I were going into a niche area of the food service industry I would be more inclined to create and market frozen and/or boxed items. If you open a restuarant you are tied to the local economy and have a limited market. If you sell frozen/boxed items you can market nationally or even globally. That is just my take on the idea. True. However, if they went with a product, they would need investors. $200,000 won't do it. Either that or try getting one of the larger food chains to sell their item which is a slow process. Have you looked at competitors like Cambrooke Foods or GF restaurants? I tend to agree with those who suggest not to put all of the $ in a restaurant with this current economy. No one is eating out like 3-4 years ago. Major restaurants are hurting. And you will need to pour any money from profit BACK into the restaurant to be successful. Many small business owners have spouses working full time while they launch a new biz. You will be needed to help run the place too (just the cost of decor, new flooring, renovating, and supplies will eat into your inheritance) as you cannot afford to hire staff (who are not family and work for small change) and both of you will have no time for holidays or vacations. Ask yourself if this is what you really want to do? Quote Link to comment Share on other sites More sharing options...
StephanieZ Posted September 7, 2011 Share Posted September 7, 2011 (edited) I would put it in real estate and/or invest it broadly in the stock market. Most likely, I'd buy some land to live on b/c I would loooooovvveee to own more land (50-100 acres or more would be my goal) just b/c that is a dream of ours, and it would be a lifetime improvement in our quality of life . . . or, if I didn't want to do that, I'd hire a financial advisor to help us invest in a diversified portfolio of assets (stocks, bonds, etc.) Nest egg. Gotta love a nest egg. I would not start up a business with it unless I was passionate and expert in the field. We are small business owners b/c dh is a veterinarian, and owning your own practice is, in general, both more professionally satisfying (complete medical control) and also more lucrative than being an employee -- and we have a spendy family and were willing to sacrifice some comfort in order to work hard for the $$. However, being a small business owner is very risky, even if you are passionate and expert, and in a proven business. It is also really hard work. If you are truly tempted to start up a business, I'd advise you to spend the next couple years researching your idea, doing market anaylsis, and getting whatever education you will need. (At the minimum, you'd want to be savvy in hiring/firing/*employee management*/contracts/*small business accounting*/quick-books/*cash flow management & budgeting*/relevant regulations/law). Allow at least 6 months to develop a good business plan. Take some classes. Read a lot. I have no idea whether a gluten free restaurant would be a good idea. My mom is gluten free, and I know that more and more regular restaurants and regular groceries are carrying gluten free options, so I wonder if a specialty restaurant would be workable long term as the main places offer more options. A gluten free bakery and/or small store might be a great thing if you are in a huge, health conscious market, but, again, there is the risk of being squeezed out when your neighborhood supermarket opens an aisle with the same products and cheaper prices (due to scale and/or loss-leader marketing). Expect to work a LOT LOT LOT (think 100 hour work weeks) at least the first couple years . . . Expect to risk EVERYTHING YOU OWN. Expect more stress than you have ever imagined. Our first couple years of business ownership was, by far, the most difficult years of our life, our marriage, our relations with family, etc. We lived, breathed, and slept always consumed by it. It broke our hearts over an over again (largely staff issues). We fought a lot. We stressed ALL THE TIME. Do not go into it without a passion and a strong marriage and a strong commitment. It does get easier, as you get harder and more cynical and stronger and more experienced. Edited September 7, 2011 by StephanieZ Quote Link to comment Share on other sites More sharing options...
Quiver0f10 Posted September 7, 2011 Share Posted September 7, 2011 (edited) Guess I should have mentioned... Dh is a supply officer in the Navy. Meaning he handles all the money for his command, all the supplies, inventory (food and parts) ordering new supplies for ANYTHING that his command needs (like ship parts, etc) and he also manages all the enlisted guys who work under him (mostly cooks and similar). He has to stay on his cooks to make sure they are making decent food, etc.. He also worked a lot of fast food in his teen years and worked his way up quite easily. He's very good at "running things" and managing people. I, on the other hand, am useless in this regard.. :tongue_smilie: However, I think the gluten-free market is on fire right now and will be even moreso in the next 10 years. Crazy idea? Well 10 years ago the fat free market was on fire...I would speak with a financial advisor before manking any decision. Me, personally, I would pay off any debt and/or mortgage and invest any that was left over. Edited September 7, 2011 by Quiver0f10 Quote Link to comment Share on other sites More sharing options...
RanchGirl Posted September 7, 2011 Share Posted September 7, 2011 I would speak to a financial advisor who knows your whole picture, the present situation and your future needs. A restaurant is risky, but maybe it would fit into your whole picture, I don't know. You don't want to risk *everything* IMO unless you have a backup plan for retirement and/or it's a long way away. (I am biased, but I would do this even if I weren't married to a financial advisor!) Not to mention the stress and commitment as a previous poster mentioned... It's a big decision. Quote Link to comment Share on other sites More sharing options...
phathui5 Posted September 7, 2011 Share Posted September 7, 2011 Are you already debt free? Do you own your own home? Quote Link to comment Share on other sites More sharing options...
Misty Posted September 7, 2011 Author Share Posted September 7, 2011 Great points ladies! Thanks for your comments.. I really don't want to spend the rest of my life stressing over a small business.. so maybe real estate investment would be the way to go. Dh can renovate or fix ANYTHING so I think that would be a good direction for us. And I think he would enjoy that more too.. Home Depot has always been his home away from home. :lol: Quote Link to comment Share on other sites More sharing options...
Misty Posted September 7, 2011 Author Share Posted September 7, 2011 Are you already debt free? Do you own your own home? We own our home and we are almost debt free (minus the mortgage).. We will be debt free by early next year. Even our cars will be paid off. Still have 4 kids to put through college though.. I think we'll do small investments here and there and use the rest for college, etc. Quote Link to comment Share on other sites More sharing options...
cjzimmer1 Posted September 7, 2011 Share Posted September 7, 2011 Very true.. We're definitely not counting our chickens just yet.. And I so dread the day it happens.. But it WILL happen so it's something we need to plan for. My grandparents are in their mid-90's now and not doing so well. Dh is starting to talk about what we should do with the money so we are trying to plan so we don't do any "shock spending", but we're definitely not spending NOW.. In fact, we are saving.. because you just never know. We're definitely not counting on it. I really hate to think about it and plan for it because I definitely don't want them to pass. It's going to be a shock and such a loss of wonderful people from our lives. Honestly, I wouldn't be planning anything at this point. As another poster pointed out, you don't even know for sure you will get this money. End of life stuff is EXPENSIVE. Before my grandfather died he was in an assisted living facility. The cost was $14,000 per MONTH. And the nursing home was even more expensive. And this was a low cost of living area. Another thing, is that you may find what you want to do changes dramatically after your loved ones are gone. I would plan to park the money for 6 months to a year before spending even 1 cent of it. If you agree not to touch it it for a certain length of time you won't fritter it away and you will know exactly where you are at that point in life and can make decisions based on what is workable for you then. Right now you might think about a restuarant but what if one of you becomes disabled between now and then, or you find yourself needing to move across country etc. While it can be fun to dream, I sure wouldn't be spending a lot of time and effort planning how to spend money and I don't even have yet. Life is too full of unpredictables. Quote Link to comment Share on other sites More sharing options...
Recommended Posts
Join the conversation
You can post now and register later. If you have an account, sign in now to post with your account.